Santanomics: The economics of the festive season



Santanomics: The

economics of the festive

season

December 2014

Contents

Slide 3

-

Introduction

Slide 4

-

Executive summary

Slide 5

-

Christmas spending in 2013

Slide 8

-

Trends in Christmas spending

Slide 14

-

Appendices

Santanomics: The economics of the festive season

PwC

December 2014

2

Introduction

?

During the Christmas period, consumers in many countries increase their spending as they

purchase presents, decorations, food etc. for the festive period. This increase in spending makes

this a ¡®make or break¡¯ time for retailers and their supply chain. Therefore businesses need to be

aware of how consumer spending will change over this period.

?

To this end, we have attempted to calculate spending over the Christmas period by looking at the

excess spending that occurs in November and December over and above the average of the other

months of the year.

?

We have estimated spending over the Christmas period, both in per person and aggregate terms, in

the major Western economies, Brazil and Russia, and the peripheral Eurozone economies that we

monitor (see the appendices at the back for a more detailed description of our methodology and the

sources of the data we used).

?

It should be noted that our results give a broad indication of cross-country trends in Christmas

spending but should not be taken as precise dollar estimates.

?

The following slides set out our results and show how countries have moved in the rankings over

time, as well as how Christmas spending has recovered from the financial crisis.

Santanomics: The economics of the festive season

PwC

December 2014

3

Executive summary

1.

2.

3.

4.

Ireland tops the rankings of Christmas

spending per person, with shoppers

spending around $1,200 during the holiday

season;

GDP weighted Christmas spending per person

in the Eurozone periphery fell by

around 28% overall between 2007-13

(see chart), as the crisis hit these economies

particularly hard.

In terms of aggregate Christmas

spending, Brazil and Russia make the

Top 10 despite spending relatively little per

person (see chart); and

The US remains the largest Christmas

market in the world, spending more than

$240 billion during the holidays.

Santanomics: The economics of the festive season

PwC

Real Christmas spending per person is lower in

Brazil and Russia than in advanced economies

1000

GDP weighted Christmas spending per

person (constant 2013 US$)

We have analysed real spending over the

Christmas period across 12 countries. Our results

show that:

800

600

400

200

0

Major Western

economies

2007

Eurozone

periphery

Brazil and

Russia

2013

Sources: PwC analysis, Datastream, national statistical agencies, World Bank

Notes: Major Western economies ¨C G7 excluding Japan

Eurozone periphery ¨C Greece, Portugal, Ireland & Spain

December 2014

4

Christmas spending in 2013

Santanomics: The economics of the festive season

PwC

December 2014

5

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